Section 1, 3-2
Which of the following concerning escrow is true?
An escrow cannot be altered by either party except with the consent of both parties.
C deeds a property to J, who fails to record. C subsequently deeds the same property to A. Which of these statements is true?
A is owner if she first records without notice of J�s rights.
Which of the following persons is protected by the recording laws?
A person who acquires title in good faith and for value
Which of the following documents serves as the BEST evidence of good title to a property?
Abstract of title
A sells Blackacre Farm to B, who does not record the deed. A then makes a gift of Blackacre to C by way of a deed, which C records. Which of the following is true?
B has better title than C, because C is not a bona fide purchaser for value.
An escrow company performs which of the following functions?
Collects all monies and pertinent documents for distribution
A standard title insurance policy offers protection to an owner against which of the following?
Costs of defending a lawsuit challenging the title
A written instrument of value is deposited with a disinterested third party who will deliver it on the fulfillment of some condition. This BEST describes which of the following?
Escrow
If escrow instructions differ from the deposit receipt or sales contract and the escrow instructions have been signed by both the buyer and seller, which of the following is correct?
Escrow instructions take precedence.
A broker finds a prospective buyer for a single-family dwelling, and the subject of title insurance has come up. The buyer wants the greatest owner protection available. Which of the following should the broker recommend?
Extended coverage policy of title insurance.
The Real Estate Settlement Procedures Act (RESPA) is designed to regulate which of the following?
Disclosures of closing information
Which of the following statements regarding title insurance is true?
It protects against losses suffered owing to defects in the title.
Against which of the following risks does a standard owner�s policy of title insurance normally afford protection?
Minor�s deed
A person must record an instrument within what period of time after it is signed and delivered?
No time limit
Which of the following functions does an abstract of title perform?
Offers a condensed history of all recorded documents
How frequently are title insurance premiums paid?
Only at the time of issuance
Which of the following is true?
Recording gives constructive notice.
When a title search reveals that there is a broken chain of title, this is BEST cured by:
a quiet title proceeding.
There are several requirements in a valid escrow concerning the sale of real property. One of them is:
a valid and enforceable written contract for the sale of the land.
An abstract of title is BEST described as a(n):
a brief digest of the title to a particular property.
When transactions involving the sale of real estate are placed in escrow, this means:
a designated agent agreed to by the parties holds the necessary documents until the terms are met.
The records assembled in chronological order that document the chain of title are called a(n):
abstract of title.
In an escrow transaction, the escrow officer is a(n):
agent for the buyer and seller and holder of all pertinent papers.
A valid escrow is likely to be created in connection with all of the following EXCEPT:
bankruptcy.
A bona fide purchaser for value who records his deed will take precedence over a grantee with a prior unrecorded deed:
because the purchaser for value has a right to rely on what is found in the records.
An unrecorded deed is valid and binding:
between parties to the deed.
A properly established escrow is voidable at the option of:
both buyer and seller acting together.
All of the following statements are true EXCEPT that:
recording is the best security against an unmarketable title.
For a deed to be validly recorded in most states, all of the following are true EXCEPT that it must be:
signed by the grantee.
When a title insurance company issues an ALTA extended policy, such a policy usually extends beyond the risks normally insured under the standard policy to include all of the following EXCEPT:
the effect of zoning regulations.
All of the following can act as an escrow agent to close a transaction EXCEPT the:
home inspection company.
When handling an escrow for both parties, the escrow holder is acting as a(n):
independent contractor.
All of the following are insurance policies against losses suffered due to defects in the chain of title to a specific parcel of real estate EXCEPT a(n):
insurer�s policy.
Someone who cannot act as a notary on a deed is a(n):
interested person.
An owner�s title insurance policy protests the owner against:
loss of title to a claimant with superior right of title.
An acknowledgment may be void if:
made before an officer who has an interest, such as a lessor.
A standard policy of title insurance insures against all of the following EXCEPT:
mining claims.
A property escrow, once established, should be:
not subject to the control of any one interested party.
All of the following documents will most likely be recorded EXCEPT the:
offer and acceptance.
Escrow is often used for all of the following purposes EXCEPT to:
offer properties for sale to prospective buyers.
In real estate transactions, all of the following documents are usually recorded EXCEPT the:
offer to purchase.
An owner�s title insurance policy terminates all coverage of the owner:
on written mutual cancellation.
When money in a pending purchase of real property is held in escrow, the broker can obtain out of escrow an advance on earned commission:
only when both buyer and seller give their written consent.
The chronological record of all conveyances and encumbrances affecting the recorded title to real property is known as a:
chain of title.
Deeds are recorded to provide:
constructive notice.
When a mortgagee requires a title insurance policy on the secured property, the:
policy is assignable.
In closing a real estate transaction, various expenses and carrying charges are apportioned between the buyer and seller. These apportionments appear on the settlement statement as:
debits and credits.
When a property is sold subject to an existing lease that has nine months before it expires, all of the following statements regarding the settlement statement are true EXCEPT that the:
prepaid rent is a credit to the seller.
All of the following would be covered in a standard title insurance policy EXCEPT:
prescriptive easements.
It is common procedure to record all of the following instruments EXCEPT a(n):
promissory note secured by a mortgage.
An escrow agent will prepare all of the following EXCEPT the:
deed.
A standard form policy of title insurance protects against loss resulting from all of the following EXCEPT:
encroachments on the property
Constructive notice of a fact is established by:
entering it in the public record.
After signing a contract for the sale of real estate, the deed is delivered to the buyer or held by a third person designated as the:
escrow.
A buyer is interested in buying property in another state without an inspection. The buyer should obtain a(n):
extended coverage title insurance policy.
The usual standard policy of title insurance insures against loss due to:
forgery in the chain of recorded title.
The standard form title insurance policy insures against:
forgery of a deed.
The only daughter in a large family inherited a condominium apartment from her father after a lengthy probate proceeding in which there were many conflicting claims to the apartment. Before selling the property she would be BEST advised to obtain a:
title opinion.
For a prospective buyer of real estate to investigate the validity of the title, the buyer should request a(n):
title search.
Tracing the conveyances and encumbrances of real property is known as a:
title search.
The best way to discover a flaw in the recorded title to a piece of real property is by:
undertaking a search of title.
If a title policy reveals the existence of numerous liens not disclosed in the sales contracts, the title is said to be all of the following EXCEPT:
unenforceable.
A deed made and delivered but not recorded is:
valid between the parties and valid as to third parties with notice.
A property on which a mortgage will be recorded is likely to have an on-site inspection under which of the following?
An ALTA extended policy
Which of the following statements about evidence of title is true?
An abstract of title offers no guarantee of title.
Under the rules and regulations of RESPA, which is true?
Borrowers receive an explanation of settlement charges.
An abstract of title accomplishes which of the following?
Gives a history of the title, including the recorded encumbrances against the property
The recording system performs which of the following functions?
Gives notice to all of the existence of documents
To what does the term chain of title refer?
Succession of property owners.
Which of the following events must happen on the closing of a real estate purchase transaction?
The deed must be delivered.
Which of the following statements about title insurance is correct?
The insurance coverage on a mortgagee�s policy is based on the declining balance of the loan.
Which of the following statements about escrow officers is true?
They can disburse money and documents when all conditions of the escrow have been satisfactorily met.
Which of the following provides the BEST surety of good title?
Title insurance
Where is the BEST place to find a cloud on title?
Title search
Which of the following types of evidence of title gives the LEAST protection to a buyer
Title search
Deeds are recorded for which of the following purposes?
To provide constructive notice of their existence
Which type of evidence of title requires the LEAST amount of search through the records?
Torrens certificate
A system of land title registration in which the state guarantees title is the:
Torrens title system